CGMC says Gov. Walz LGA funding proposal is inadequate
News | Published on January 30, 2023 at 1:46pm CST
Despite sizable budget surplus, Walz’ budget proposal includes disappointing increase to Local Government Aid appropriation
ST. PAUL—Gov. Tim Walz unveiled the remainder of his budget proposal last week, which included a recommended $30 million increase to the Local Government Aid (LGA) appropriation. This number falls dramatically short of what cities in Greater Minnesota need, according to the coalition of Greater Minnesota Cities. (CGMC).
“The $30 million increase doesn’t keep up with inflation,” said CGMC president and Thief River Falls mayor Brian Holmer. “With a record-high surplus, this proposal is disheartening.”
The CGMC’s top legislative priority this session is a $150 million increase to the LGA appropriation, a statewide program that is vital to restraining property taxes, reducing inequities between communities and ensuring all cities are able to provide high-quality services and quality-of-life amenities to their residents and businesses.
“Without a significant increase to LGA, cities across the state will have no choice but to raise property taxes, cut services or both,” said Holmer. “In a time where everyone is feeling the pressures of inflation and the state has plenty of money to go around, this proposal is surprising and disappointing.”
Since 2009, LGA has only grown by 17 percent while inflation based on the measure of state and local government has increased by 55 percent, and this fact does not begin to acknowledge the massive increase in the cost of goods and services cities have experienced over the last year. Additionally, LGAs share of the state’s general fund has shrunk from 3.3 percent to 2.1 percent since 2009.
“LGA is critical to many Greater Minnesota cities, and we are still far behind where we need to be. If we are truly going to build strong communities in Greater Minnesota, LGA needs to be funded at a much higher level,” said Holmer. “For ‘One Minnesota’ to become a reality, the state must do more to support communities across the state. We look forward to continuing to work with the governor and the legislature to better address the needs of Greater Minnesota cities.”
About the Coalition
The Coalition of Greater Minnesota Cities is a nonprofit, nonpartisan advocacy organization representing cities outside of the Twin Cities metropolitan area. The Coalition educates legislators about issues important to Greater Minnesota. Visit the CGMC at greatermncities.org and follow us on Twitter @greatermncities.
